Mr. Wael Sawan of Shell reports

SHELL COMPLETES ACQUISITION OF ARC RESOURCES

Shell PLC has completed the previously announced agreement to acquire ARC Resources Ltd., an energy company focused in British Columbia and Alberta, Canada, following receipt of all required shareholder, court and regulatory approvals. The acquisition accelerates Shell's strategy by adding approximately 370,000 barrels of oil equivalent per day immediately across liquids and gas, supporting a production compound annual growth rate of around 4 per cent through to 2030 compared with 2025.

"Today, we welcome ARC colleagues to Shell and look forward to building on their high performance culture, operational excellence and technical expertise in Canada's Montney basin," said Shell's chief executive officer, Wael Sawan. "The acquisition increases Shell's exposure to long-duration, low-cost liquids production. Through disciplined integration, we will build on the strengths of both organizations to unlock the value that underpins this transaction."

In accordance with terms of the arrangement agreement, ARC's shareholders will receive $8.20 in cash and 0.40247 ordinary share of Shell (each whole share, a Shell share) for each ARC common share.

Based on Shell's closing share price of 34.43 pounds sterling on Sept. 2, 2026, and the latest foreign exchange rates, this equates to an updated equity value of approximately $13.9-billion (U.S.). Shell will take on approximately $2.5-billion (U.S.) in net debt and leases resulting in an enterprise value of approximately $16.5-billion (U.S.). The equity value of $13.9-billion (U.S.) will be financed through $3.3-billion (U.S.) in cash and $10.6-billion (U.S.) in new Shell shares.

The transaction is expected to generate double-digit returns, bolster long-term cash flows and be accretive to free cash flow share from 2027 onward.

We seek Safe Harbor.